Credit Repair is an ongoing process, like the growth of another system. A system that works perfectly will require periodic monitoring and regular inspections to make sure that the objectives of the system are achieved. The same is true for fixing one’s credit history, including understanding the different regions of interest that may be reported, identifying the various mistakes that may be created and learning how to fix credit score errors. One of the best ways to raise your credit score is via Credit Repair.
There are several areas which are generally confused during the credit repair process, the first of which is inaccurate or incomplete information. This may lead to a number of problems, like the inability to become approved for home, automobile and business loans; being diminished for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to obtain certain professional licenses; and a multitude of other problems. By way of instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common cause of this problem is the failure to report accurate information.
When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken measures to make certain that all customers have access to accurate and fair reporting. The federal trade commission enacts many rules and guidelines to help Americans understand and avoid common mistakes and the negative consequences of those mistakes. By way of example, the three largest credit repair bureaus in america must inform consumers of the differences between debt settlement and bankruptcy in addition to the options available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action that might be taken against them and other important information. Among the biggest issues that consumers face is the inability to properly understand the Fair Credit Reporting Act and its rights.
Under FCRA, lenders are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if those statements are true or not. For instance, it’s perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if that creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to challenge that negative information? Is it officially valid?
This is a tricky question. In theory, it would appear that a creditor has every right to include inaccurate negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a customer’s report. If the credit reporting bureaus take the dispute seriously, the creditor will be required to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair services will simply instruct their clients not to take action to correct the problem. Why would they do this? If a creditor refuses to take steps to correct inaccurate information, the credit bureau is under no obligation to remove inaccurate information. The credit bureau can choose to investigate the dispute and take action to investigate prior to making a determination. Then it might issue a letter to the creditor telling them that the information is inaccurate and have to be updated.
This scenario plays out over every day. A consumer decides to purchase a car and does a little bit of research to see what the price will be. After talking with a trader, he decides to purchase the car. A few months pass by and he predicts the dealer and says the cost he’s offered is much less than what he was told. He asks for a refund and is told that he cannot get a refund because the credit report contains an error.
The next step is for him to send a letter to the credit reporting bureau, disputing the errors on his credit report. If he had done this before hiring the credit repair company, he would have been able to make a formal dispute. If he had not had the help of the credit repair company, he may have had to try to make the dispute himself. By using the services of a credit repair company, you are given the advantage of someone else being able to help you in this aspect of credit repair.